JACOB KURIEN Vs. KERALA STATE HOUSING BOARD

JUDGEMENT

(1.) These two original petitions are related. The facts in OP No. 1289 of 1984 may be stated first. The challenge in this original petition is to a notification, an extract of which is produced as Ext. P2. This notification is one issued by the 3rd respondent Government, exempting the shop buildings constructed in the housing colonies of the Kerala State Housing Board (the Board for short) and owned by the said Board from all the provisions of the Kerala Buildings (Lease and Rent Control) Act, 1965. The notification has been issued in exercise of the powers vested in Government under S.25(1) of the said Act. The challenge which was pressed was that there was absolutely no reason for Government to issue the said notification and in exempting buildings belonging to the Board from the provisions of the Act. It is also contended that the power under S.25(1) is not an unguided, uncanalised or arbitrary power, but one to be exercised in accordance with the policy and object of the Act in public interest. It is said that no public interest is subserved by the said notification.

(2.) The notification Ext. P2 produced along with the original petition omits the explanatory note to the said notification, which though not part of the notification, nevertheless indicates its general purport and the reason why the exemption has been granted. I shall extract it below:-

(3.) Since there is a contention that the power has been exercised arbitrarily without any reason whatsoever, the file was produced before me by the Government Pleader who appeared for the respondents, which disclosed the following facts. The Housing Board had been undertaking construction of buildings for housing of the needy on a no loss no profit basis. For keeping up the norms of public housing, roads, internal water supply and other amenities like open space for recreation, parks etc. had to be provided. Since some of the schemes selected were in the outskirts of cities and towns, shop buildings were also put up for the benefit of the colonists. It was noted that tenants of some of these shop buildings threatened to go to the Rent Control Court for fixing the fair rent under the Act aforesaid. An instance is pointed out where on such a motion by a tenant the contract rent was reduced and the fair rent was fixed based on the assessment of building tax by the local authority which made it uneconomic having regard to the cost of construction and the value of the land. Since the shop buildings were put up for providing amenities to the colonists, it was felt that buildings owned by the Board may be got exempted from the provisions of the Act, such exemption not being extended to buildings constructed by the Board for the allottees on hire purchase agreement. The matter is seen to have been examined in great detail by Government over a period of nearly three years and it was ultimately that the notification in question was issued.